The latest Congressional Budget Office report estimates that President Trump’s Big Beautiful Bill could cost $2.8 trillion. But what’s missing from the legislation has NYU finance professor and podcaster Scott Galloway sounding the alarm.
His warning about Social Security could reshape how millions of Americans plan for retirement.
Galloway, who TheStreet reports earns $16 million a year, says high earners like himself shouldn’t receive Social Security benefits at all. He’s calling for means-testing and raising the retirement age, proposals that could significantly alter retirement income across all income levels.
The math behind the crisis
According to TheStreet, Galloway highlights a series of trends that point to growing pressure on the system. Since 1957, the percentage of Americans aged 65 and older has nearly doubled from 9% to 17%.
Social Security now represents the largest federal expenditure, at $1.5 trillion, and supports approximately 69 million Americans. However, the program faces a funding shortfall that is expected to occur within eight years.
Galloway points out that many retirees collect two to three times what they paid in. Combined with longer life expectancies and fewer workers contributing, the math becomes unsustainable.
“If/when Social Security becomes insolvent, America’s grandparents will likely put their retirement on their grandkids’ credit cards,” he wrote in his newsletter.
Who Galloway’s Plan Would Affect Most
Galloway believes Social Security needs urgent reform.
He proposes eliminating benefits for retirees with over $150,000 in non-Social Security income and raising the retirement age to 70 for those born in 1978 or later.
According to TheStreet, the CBO estimates raising the retirement age could save $122 billion through 2032.
He also argues that tax breaks for capital gains and mortgage interest unfairly benefit older, wealthier Americans while younger workers get left behind.
“We now spend $5 on seniors for every $1 on children,” he wrote. “Enough already.” So what would this mean for different generations? Here’s how it could play out.
Born 1981–2012: Millennials and Gen Z, the most at risk
These generations have the least certainty about what Social Security will look like when they retire.
With decades left in the workforce, they are most exposed to long-term changes in eligibility, payout formulas, and program funding.
They’re also less likely to benefit from tax breaks tied to asset ownership, which Galloway criticizes as favoring older, wealthier Americans.
For Gen Z and younger millennials, Social Security may serve as a supplement, if it’s there at all, not the foundation of retirement.
Born 1946–1980: Boomers and Gen X, nearing the cutoff
Most Gen X workers are approaching retirement and may not be directly affected by Galloway’s suggestions. Still, higher earners in this group could face reduced benefits if future changes include income-based limits.
Boomers are likely to remain untouched. Many are already collecting benefits, and lawmakers would face political pushback if they tried to reduce payments for current retirees.
But if ideas like means-testing gain traction, older beneficiaries could face new questions about fairness and long-term sustainability.
Building your retirement fortress
Regardless of whether Galloway’s recommendations gain traction, the best strategy is to prepare as if Social Security won’t be enough. These steps can help strengthen your long-term financial security.
- Max out tax-advantaged accounts. If you’re not contributing the maximum to your 401(k), you’re missing out on potential employer matches and tax-deferred growth. That’s money you could use later, regardless of benefit changes.
- Open and fund an IRA. An IRA gives you more flexibility in how you invest. Traditional IRAs offer a tax break now, while Roth IRAs offer tax-free withdrawals in retirement.
- Consider extending your career. Working just a few more years can make a big difference. You’ll have more time to save, your investments can grow, and you may qualify for a higher monthly benefit if you delay claiming Social Security.
- Create multiple income streams. Relying on one source of retirement income is risky. Diversify with rental income, part-time consulting, dividend-paying stocks, or small business ventures.
Scenarios to stress-test your retirement plan
No one can predict exactly how Social Security will change. But planning for a few possible outcomes can help you avoid surprises later.
- Benefits cut by 25%. If the trust fund runs short and Congress doesn’t act, payments could be reduced. Multiply your projected benefit by 0.75 and consider whether your savings can fill the gap.
- Retirement age rises to 70. If full benefits aren’t available until age 70, you may need to work longer or draw from savings in the meantime. Delayed claiming can increase monthly payments, but only if you can afford to wait.
- Benefits eliminated for high earners.Galloway suggests ending benefits for retirees with more than $150,000 in non-Social Security income. If your projected income may exceed that threshold, consider how reduced or zero benefits could affect your overall plan.
- No changes at all. The system may remain intact. In that case, any extra savings you’ve built will offer more flexibility, but it’s safer to prepare for less.
Don’t wait for reform to secure your future
Galloway’s recommendations may never become law, but they reflect growing concerns about how long Social Security can sustain itself in the face of changing demographics and rising costs.
Whether you agree with his ideas or not, the bigger message is hard to ignore: Relying too heavily on Social Security may no longer be realistic.
By building personal savings, accounting for potential changes, and keeping your strategy adaptable, you can create a more stable and dependable future, regardless of what happens in Washington.
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